Genuine Parts Clocks 15% Top-Line Growth In Q4; Says Confident In Its Strategic Plans Despite Uncertain Macro-Environment

Genuine Parts Co GPC reported fourth-quarter FY22 sales growth of 15% year-on-year to $5.52 billion, beating the consensus of $5.34 billion.
The company attributed the sales growth to an 11.1% increase in comparable sales and an 8% benefit from acquisitions.
Automotive Group sales grew 7.6% Y/Y. This segment's profit margin increased 30 basis points to 8.6%.
Sales for the Industrial Parts Group rose 29.6%, and the segment's profit margin expanded 150 basis points to 11%.
Adjusted EPS of $2.05 beat the analyst consensus of $1.89.
Gross profit increased 16.5% Y/Y to $1.97 billion. Selling, administrative and other expenses were $1.5 billion, an 19.7% rise Y/Y.
Cash and equivalents totaled $653.4 million as of Dec. 31, 2022. Net cash generated from operating activities for the year totaled $1.5 billion.
Paul Donahue, Chairman and CEO, said, "We had an exceptional 2022 which included celebrating our 95th year of operations. We have quickly turned our attention to the year ahead and, while the macro-environment remains uncertain, we are confident in our strategic plans to drive sustained sales and earnings growth, continued margin expansion and strong cash flow."
Outlook: Genuine Parts sees FY23 revenue growth of 4% - 6%. It expects FY23 adjusted EPS of $8.80 - $8.95 versus the consensus of $8.73.
Price Action: GPC shares traded higher by 3.44% at $179.90 on the last check Thursday.

Overview Rating:

Good

0100

Earnings Calendar